Microsoft's Azure cloud service is experiencing a massive outage affecting multiple services, including Xbox game downloads and Minecraft. Microsoft confirmed the cause in an Azure status update, stating the widespread connectivity issues began around 16:00 UTC. The company attributed the trigger event to "an inadvertent configuration change" in the Azure Front Door (AFD) service. Several concurrent actions are being taken to solve the issue, but the Azure outage is still ongoing at the time of writing, and Xbox game publishers have started warning users about potential problems. On Bluesky, Obsidian Entertainment confirmed that due to the continuing outage, The Outer […]
Microsoft reported fiscal first-quarter revenue and profits ahead of analysts’ expectations on Wednesday, with Azure revenue growth climbing to 40%.
The earnings report came as the company continued to deal with the lingering effects of a widespread cloud outage that started earlier in the day.
The company’s capital expenditures reached a record $34.9 billion — reflecting its long-term buildout of cloud infrastructure to meet demand for artificial intelligence. That was up from $24.2 billion in Q4. Microsoft had projected capital spending of more than $30 billion for Q1.
Along with that unprecedented buildout, Microsoft sought to address investor concerns about a potential AI bubble, by highlighting its commercial remaining performance obligation (RPO), a measure of future contracted revenue. That backlog grew 51% year-over-year to $392 billion.
The company also disclosed for the first time that this RPO has a weighted average duration of roughly two years, a move intended to show investors that its record capital spending is supported by strong, long-term customer demand.
Revenue was $77.7 billion for the quarter ended Sept. 30, Microsoft’s first quarter of fiscal 2026. That was up 18%, and compared with average analyst expectations of $75.39 billion. The company said the result was driven by strong demand for cloud and AI services.
Profits were $27.7 billion, or $3.72 per share, beating expectations of $3.66 per share.
Earlier Wednesday, an Azure cloud services outage disrupted operations for customers worldwide including Alaska Airlines, Xbox users and Microsoft 365 subscribers. Microsoft reported as of early afternoon that it was rolling back the faulty configuration and that customers should see improvements.
Microsoft stock was down by about 3% in after-hours trading. The company’s market value reached $4 trillion after the announcement of its new OpenAI deal on Tuesday morning.
Huge Microsoft outage takes down Xbox, Minecraft and more Microsoft Azure has experienced a major outage, taking down internet services both inside and outside of the company. DownDetector is seeing a major spike in outage reports for Microsoft services, including Minecraft, Xbox, Microsoft Outlook, Office 365, Teams, and more. There are also outage complaints for […]
Login
